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White House Warns Staff on Market Bets After Iran Strike Pause

Wall Street Journal Markets •
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The White House Management Office issued a staff-wide email on March 24 warning employees against improperly leveraging their positions for well-timed bets in futures markets. The warning came one day after President Trump announced a sudden pause of strikes against Iran. About 15 minutes before the policy shift, a flurry of activity was detected in the futures markets.

While there is no evidence of leaks or insider trading, federal employees and the politically connected now face new temptations through crypto-based prediction markets. The timing of the futures market activity raised concerns about potential misuse of non-public information. The White House email emphasized that staff must avoid any appearance of impropriety when it comes to financial trading.

The warning highlights growing scrutiny of how government officials interact with financial markets, particularly as crypto-based prediction platforms gain popularity. This development comes amid heightened tensions in Iran and increased market volatility. The White House's proactive stance suggests officials are taking potential conflicts of interest seriously, even without concrete evidence of wrongdoing.